I have a 1996 silver 3.8L Camaro and I'm having some possible transmission/computer problems. The engine light will kick on, sometimes right when I start or while I'm driving. When driving, it sometimes comes on when the car shifts into third gear, especially. Once the light is on the rpm surges, although not always to the limit. It usually surges around 500-1000 more rpms than it should normally, no matter the speed. This also makes me use more brake pedal, especially when coming to a complete stop.
Lately these conditions have occured more frequently and today I started the car, the light came on, and it was surgeing more. As I was going down the road it didn't want to shift and the rpm was around 2500-3000 only going around 20mph. When I gave it alittle more to see if it would shift the car shut off. It did that to me three times. Luckily the place I had to be at wasn't too far away and it was all residential streets. After I was done with what I was doing, I got back in the car and headed home, and it was still showing higher rpms at low speeds. However, I drove around my block and messed with some settings, such as putting it in park and seeing what the 2nd gear start would do. When I did, it seemed to shift better, but the RPMs were still a little high, but were lower than before. Then I tried used regular Drive instead of Overdrive, and it didn't seem to have too many differences. Still, when going back to OD I was able to shift into 3rd, altough it jolted into it, in a rough manner.
So if you guys know anything, the help would be appreciated. Like I said, it doesn't do it all the time, but has been more frequent. I don't think it's a mechanical type of problem, it seems more electronic to me. Maybe something to do with a sensor.

*Update: I just drove the car a few minutes ago and although the light was still on and shifting was still rough, it was better this time. For one, it did shift, and two, the rpms were closer to normal. But still, the shifting was inconsistent and rough. It just has to be a sensor of some kind. It never really acts the same, it's always different. There's no real pattern, but it always consists of rough shifts and inconsistent rpms.

You need to have the error codes read. Autozone will do it for free in most states.

Six,
You need to have it checked and corrected before you do some serious damage. The GM tran's have had some problems with slip codes and when it happens they go into a fail safe, high line pressure mode which can break things on the shif if left uncorrected for too long.
Take it to AAMCO, they offer a free diagnostic if I recall correctly. You dont have to get them to fix it, but at least give them a shot.

Wherever you take the vehicle for a FREE check-out, just confirm up-front that you will not be asked to pay a diagnostic fee if you decide that you don't want them to work on your car. There are a few trans shops around me that advertise "FREE" but if you don't leave your car with them, or allow them to do the work, they will charge you... I work at a Cottman shop and I personally NEVER charge anyone for a diagnostic check-out. However, MOST trans shops are individually owned (franchised), and each owner can do as he/she pleases.

Based on what you are indicating, it sounds like it could be a transmission related problem. Things to check out:
MLPS/Neutral Safety Switch/Range Selector Switch (what ever you want to call it)
Throttle position sensor

These items can present themselves as internal trans. problems but can be remedied pretty easily.

Have you checked the trans. fluid to make sure it's at the right level? What color is the fluid? How does it smell?

How many miles are on the car? You have a 4L60E and they are not known for being a very strong transmission..

Well, last night the light came off and the car ran normal. So today, I drove it around and it ran fine with no problems. I was just about ready to turn on the street that leads to my house and sure enough, the light came back on and some of the conditions returned.
So I headed to Autozone and their code reader said it was a pedal positioning sensor, which by their computer is also a throttle posit. sensor.
Know, I just need to figure out where it is. However, when I do, I'm going to check the connections first. They may be loose, causing it do be on again/off again. If the sensor was shot, wouldn't it mess up all the time?

Glad to hear that you migh have located the source of the problem. The throttle position sensor is located on the throttle body (intake). If you have a divorced air filter-meaning it's located somewhere other than right on top of your intake-just follow the hose that carries the fresh air after the filter back to your engine and you will have located the throttle body. The TPS, or throttle position sensor, will be attached to the throttle body. It is a straight forward swap as I don't think it needs adjusting once installed.

Your question about if it is messed up would it do it all the time-NO! TPS when they start to fail can intermittently lose signal due to failed windings inside the sensor, and also as they get hotter they start to malfunction.